Here’s why Bitcoin (BTC) could experience another correction soon

TL;DR

Bitcoin fell below $96,000 after $3.2 billion worth of BTC was shipped to exchanges, signaling potential selling and further price pressure. Despite the drop, analysts predict a rebound, with targets ranging from $110,000 this year to $320,000 by 2025. Flying south again?

Bitcoin (BTC) became the talk of the town in mid-December, hitting a new all-time high of over $108,000. However, the latest Federal Reserve FOMC meeting and more specifically Jerome Powell’s comments changed the scene in the crypto market.

Although the US central bank chairman announced another rate cut of 0.25%, he hinted that concerns about rising inflation mean they may not cut rates in the future in 2025 .Powell added that the Fed is not allowed to hold BTC, casting doubt on Trump’s move. proposed plan to establish a strategic reserve of BTC.

The disclosure occurred on December 18, and the major cryptocurrency saw increased volatility the following week. The price ranged from $92,600 to nearly $100,000. In the last few hours, BTC fell 2% to its current $95,600 (according to data from CoinGecko) and one important factor indicates that the decline could intensify in the near future.

BTC Price, Source: CoinGecko

Popular X user Ali Martinez revealed that more than 33,000 BTC (valued at approximately $3.2 billion) have been sent to exchanges in the past seven days. This move suggests that investors may be preparing to offload their holdings. Large sales would result in an increase in circulating supply, which, combined with non-growing demand, could negatively affect the price of BTC.

Martinez previously described $97,300 as a critical support zone for the asset due to numerous investors buying roughly 1.5 million BTC there. As mentioned above, however, the price fell below this level.

The opposite scenario

Contrary to the assumption mentioned above, many analysts remain optimistic that the asset’s valuation could once again exceed $100,000 soon. X user Captain Faibik predicted a rise of around $110,000 by the end of the year, while Crypto Rover believes BTC is “about to go parabolic” next year.

Jelle and Mags are also among the bulls. The former predicted a new ATH once BTC claims $102,000, while the latter believes the bull cycle is still far from peaking. Mags predicted a jump to more than $320,000 sometime in 2025, after which the bears could take over.

To learn more about price predictions and to see if now is the right time to invest in BTC, watch our dedicated video below:

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!